If you're in the market for a used car, be prepared to pay more – that is if you can find one.
A lack of new-car production during the pandemic has led to a limited supply of used cars today.
A recent study by iSeeCars.com found that the average price of 3-year-old cars has increased by more than 40% since the pandemic.
Factories around the world shut down and new cars weren’t being made during that time, said Ken Brauer, Executive Analyst at iSeeCars. Now, we’re seeing the ripple effect of that.
"All those non-produced new cars from '20 to '22 are now non-existent used cars in 2025, and that means, just like before, we had a scarcity of new cars, now we've got a scarcity of used cars," he said.
As a result, the Manheim Used Vehicle Value Index shows prices up 6% in June, year over year.
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Kiana Lee owns an older Mitsubishi that she’s trying to keep running because she knows how expensive cars are these days.
"I can barely do this one, and this one is $435.69 every month. I don't want to go higher," she said.
Watch to see ways to get a good, affordable used car
It’s harder to find a good used car for under $20,000, according to Gary Heflin, owner of Courtesy Automotive.
Yet, he says it’s still possible, but you need to do some homework.
Heflin recommends making sure the dealer gets good online reviews and backs up what they are selling, ideally with some type of warranty.
"If someone calls me a week later and the battery's not working on the car, we make adjustments on that kind of stuff. We are standing by what we're saying, because we've looked at the car," he said.
Brauer says that when buying a used car in a tough market, there are some ways to still get a deal.
- Be flexible on the model, and not in love with just one particular vehicle
- Have 3 to 5 models in mind and see which one isn’t selling the best
- You’ll have more options if you’re willing to travel to a dealership further away from your home to make the purchase
He also says to think beyond the sales price and consider your total ownership costs like insurance and maintenance, with some brands having much higher maintenance costs, compared with an American or Japanese car.
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“Generally speaking, U.S. brand cars and high-volume cars are going to be easier and less expensive to maintain than, say, premium European cars that can run into parts problems and supply problems,” he said.
Some 3-year-old used cars that you may still be able to grab for under $20,000, according to the survey, include the Toyota Corolla, Honda Civic, Chevy Trax, and Nissan Sentra.
Beyond those, however, you may have to look at 4 or 5-year-old cars to stay below the $20,000 threshold.
That way, you don’t waste your money.
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